Coverage
Disability Income Insurance Policy Description
Disability income insurance provides income protection through payment of monthly benefits for up to the length of
the benefit period while the insured is totally disabled from a covered accident or sickness. Benefits begin after
the elimination period. Coverage is guaranteed renewable to the insured’s age 65; longer under certain conditions.
California
“Any Occupation” has been replaced by “Usual Occupation” which is defined as follows, “any employment, business,
trade or profession and the Substantial and Material Duties of the occupation the insured was regularly performing
for their employer when the disability began. Usual occupation is not necessarily limited to the specific job the
insured performed for their employer.” “Total Disability” definition has been modified and reads as follows, “due
to a sickness or injury, the insured is unable to perform with reasonable continuity the substantial and material
duties necessary to pursue their usual occupation and they are not working in their usual occupation. After
benefits have been paid for two years, total disability and totally disabled mean that due to a sickness or injury,
the insured is unable to perform with reasonable continuity any occupation in which they could reasonably be expected
to perform satisfactorily in light of their age, education, training, experience, station in life and physical and
mental capacity.” “Partial Disability” definition has been modified such that required loss of time (time spent in
the daily performance of the insured’s usual occupation) has been decreased from 25% to 20%. The definition also
includes a requirement that the insured be unable to earn 80% or more of their prior monthly income.
Benefit Period Description
The benefit period is the maximum amount of time any combination of total disability or partial disability monthly benefits will be paid while the insured is totally disabled.
Waiting Period
The Waiting Period (also called Elimination Period) is the amount of time the Insured must be continuously, totally disabled before being eligible to receive monthly benefits.
Riders
A rider is an insurance policy provision that adds benefits to or amends the terms of a basic insurance policy.
Riders are typically optional and vary based on the insurance company, the product or the state where the insured
lives. Some riders may be offered at no additional cost, while others may have additional cost.
Below is a list of Optional Riders available on this platform. If you’re interested in an
Unavailable Rider – or learning about other options, please close this window, click the “Submit” button and enter
your contact information. One of our licensed insurance Agents will contact you to answer your questions!
Optional Riders
Automatic Increase Benefit Rider
Guaranteed Insurability Rider
Non-Cancelable Rider
Own Occupation Rider
Residual Disability Benefit Rider
Supplemental Disability Income Rider
Unavailable Riders For This Platform:
Catastrophic Disability Benefit Rider
Critical Illness Benefit Rider
Retroactive Injury Benefit Rider
Return Of Premium Benefit Rider
Automatic Benefit Increase Rider Description
After one year of continuous monthly disability benefits payments, this rider increases the base policy monthly benefit by 5 percent of the original monthly amount each year benefits remain continuously payable, until the payment has increased to twice the original amount, at which point increases stop.
Guaranteed Insurability Rider Description
This rider gives the insured the option to increase their base policy monthly benefit by purchasing additional amounts of insurance. Additional amounts will have the same benefit period and elimination period as the policy. Increases do not require evidence of insurability and are based on the insured’s current income and the issue and participation limits in effect on the option date. Premiums for the additional insurance will be based on the insured’s attained age and the current rates. The insured cannot exercise an option if disabled or receiving benefits.
Non-Cancelable Rider Description
This rider makes the policy non-cancelable, meaning the policy and riders cannot be canceled prior to their normal termination date and the policy and rider premiums cannot be changed.
Own Occupation Rider Description
This rider extends the policy’s two-year own occupation period for the definition of total disability to the period selected in this rider.
Residual Disability Benefit Rider Description
This rider pays the residual disability monthly benefit if the insured is residually disabled, preventing them from performing some job duties resulting in a loss of at least 20 percent of prior monthly income, and the elimination period has been satisfied by any continuous period of total and/or residual disability.
Benefits will continue and premiums will be waived until the insured ceases to be residually disabled
or to the end of the residual benefit period, whichever is first. The residual disability monthly
benefit is based on the insured’s percentage loss of prior income.
Supplemental Disability Income Rider Description
This rider pays a monthly benefit less any social insurance benefits received, offset dollar for dollar, if the insured is totally disabled and the elimination period has been satisfied. Benefits will be paid until the insured is no longer totally disabled or to the end of the maximum benefit period, whichever is first. No benefits will be paid if social insurance benefits exceed this rider’s monthly benefit amount.
Catastrophic Disability Benefit Rider Description
Not available for this platform. Please contact one of our licensed agents if you’re interested
in this rider. Also, not available in CA, CT, MD and TN.
The Catastrophic Disability Benefit Rider provides a monthly benefit if the insured is catastrophically
disabled and all base policy monthly benefits have been paid. Benefits will continue and premiums will be
waived while the insured is catastrophically disabled or to the end of the catastrophic benefit period,
whichever is first.
Catastrophic disability means the insured is totally disabled past the policy benefit period and:
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Needs the presence of another person within arm’s reach and/or physical assistance to perform two
or more activities of daily living (ADLs), or is cognitively impaired;
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Does not work in any job for wage or profit; and
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Has had a physician certify their continued total disability and prescribe a plan of treatment.
Critical Illness Benefit Rider Description
Not available for this platform. Please contact one of our licensed agents if you’re
interested in this rider. Also, not available in CA, CT, FL, MD, MA, MN, NJ, NY, PA, VA and WA.
The Critical Illness Benefit Rider will pay a benefit if the insured receives a first-ever diagnosis
or has a procedure for one of these specified critical illnesses: heart attack, organ transplant,
stroke, coronary bypass, angioplasty, kidney failure, paralysis and cancer. The amount payable is a
percentage of the benefit amount. For more details, please contact one of our licensed insurance agents.
Retroactive Injury Benefit Rider Description
Not available for this platform. Please contact one of our licensed agents
if you’re interested in this rider. Also, not available in MA.
The Retroactive Injury Benefit Rider will pay a benefit if an injury causes the insured to become totally disabled
within 30-days of the injury and the insured remains continuously totally disabled until
the end of the elimination period. The benefit, payable as a lump sum after the elimination
period, is equal to the base policy monthly benefit times the number of months in the
elimination period.
Return of Premium Rider Description
Not available for this platform. Please contact one of our licensed agents if
you’re interested in this rider. Also, not available in MA and NY.
The Return of Premium Benefit Rider will pay a returned premium benefit upon policy cancellation,
policy lapse, the insured’s death or the insured’s attained age 65, or age 67 for to-age-67
benefit period. The benefit is calculated as follows:
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Add together all policy and rider premiums paid or waived.
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Multiply this premium amount by a pre-defined percentage based on the completed policy year
(i.e., 0% for policy years 1 and 2, 5% for policy year 3, 8% for policy year 4, etc.)
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Subtract from this amount all policy and rider benefits paid.
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